Deflation
a. is bad for lenders
b. is good for borrowers
c. is high inflation
d. alone could boost people's real incomes
e. explains why personal bankruptcies decline
D
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The idea that there is no voting system that can consistently make a fair choice among three or more candidates is a conclusion of
A) Arrow's impossibility theorem. B) the Condorcet paradox. C) the Voting Rights Act of 1965. D) the median voter theorem.
When a firm ignores the opportunity cost of capital when making investment or shutdown decisions, this is a case of
a. Fixed-cost fallacy b. Sunk-cost fallacy c. Hidden-cost fallacy d. None of the above
A firm should make an investment only if
a. it is profitable in every year. b. the present value of the profits exceeds the present value of the costs. c. the present value of the revenues exceeds the present value of the costs. d. there are no large losses in the early years.
Courts often estimate the value of human life on the basis of a person's earnings over that person's remaining life span.
Answer the following statement true (T) or false (F)